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Calcimator

Manufacturing Cost per Unit Calculator

Calculate per-unit manufacturing cost from direct materials, labor, and overhead including scrap adjustment.

Inputs

$
$
$
units
%
%

Results

Cost per Unit

$10.15

≈ 2 cups of coffee

Material per Unit$5.15
Labor per Unit$3.00
Overhead per Unit$2.00
Total Batch Cost$50,750.00
Suggested Selling Price$14.21
Profit per Unit$4.06
How to Use This Calculator
  1. Enter direct material cost per unit from your bill of materials.
  2. Input direct labor cost: labor rate per hour × cycle time per unit.
  3. Set machine overhead rate per hour and cycle time to calculate variable overhead.
  4. Add fixed overhead allocation per unit based on planned production volume.
  5. Review total cost per unit and the cost breakdown by category to target cost reduction efforts.

How the result changes with Units Produced

Units ProducedCost per Unit
1,000,001$0.05
3,500,001$0.01
6,500,000$0.00
9,000,000$0.00

What each input means

Total Material Cost (Batch)
Total raw material cost for the production batch.
Total Direct Labor Cost (Batch)
Total direct labor cost for the production batch.
Total Overhead Cost (Batch)
Allocated manufacturing overhead (rent, utilities, depreciation, etc.).
Units Produced
Number of good units produced in the batch.
Scrap Rate
Expected scrap/rejection percentage that increases material usage.
Markup Percentage
Desired profit markup above manufacturing cost.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Total Material Cost (Batch) = 25000, Total Direct Labor Cost (Batch) = 15000, Total Overhead Cost (Batch) = 10000, Units Produced = 5000 = 6 input(s) provided
  2. Calculate Cost per Unit
    Cost per Unit
    10.15 = $10.15
  3. Calculate Material per Unit
    Material per Unit
    5.15 = $5.15
  4. Calculate Labor per Unit
    Labor per Unit
    3 = $3

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

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